While Canada is getting used to its voluntary Grocery Code of Conduct, Australia – one of the model nations Canada followed – has made its code mandatory because it was ineffective as a voluntary code.
The initial version of Canada’s code is voluntary, with no enforcement tools other than publicly naming non-compliant violators. Australia replaced its voluntary code with a mandatory one, and introduced substantial penalties for breaches after a government-commissioned report noted the voluntary nature of the code was ineffective.
“It contains no penalties for breaches and supermarkets can opt out of important provisions by overriding them in their grocery supply agreements,” the Australia report noted.
The basics of Canada’s code were agreed to by the middle of 2024. All the major grocery retailers accepted its terms, and according to the Code’s governing body, the Office of the Grocery Sector Code of Conduct (OGSCC), more than 150 other retailers and suppliers have become members. OGSCC operations began in mid-2025, but it devoted the balance of the year preparing the industry and developing a dispute resolution process.
OGSCC President and Adjudicator Karen Proud has noted that Canada’s members have two incentives to comply. First, the grocery industry does not want any more bad publicity, and, second, politicians have made it clear that it would legislate new regulations if the industry’s own code isn’t effective.
Australia’s market is not identical to Canada’s. It is more concentrated, with two major retailers dominating the market. And while Canada’s code does not address pricing, Australia’s code was further revised in late 2025 to prohibit excessive pricing, effective July 1,2026.
During Canada’s code development, advocates noted similar rulebooks had existed for many years in Australia and the United Kingdom. The United Kingdom’s Grocery Supply Code of Practice (GSCOP) was voluntary at the outset as well, but moved to a statutory model in 2010, overseen by an adjudicator with investigatory and enforcement responsibilities, that can levy fines up to 1% of a retailer’s annual turnover.
Multiple pressures led to the development of Canada’s code. Initially, independent and small grocers sought equal treatment from suppliers. Large retailers were making demands of suppliers because of their size, asking suppliers to effectively pay for shelf space, finance capital improvements and prioritize their deliveries during times of shortage.
The last element proved critical when supply chain issues during the COVID-19 pandemic meant some independent stores could not get goods for their stores, because suppliers prioritized the more lucrative relationships with major chains. That added a public – and political – impetus to the Code.